The Worthington advance., 1887-03-24
Corporations.
81.


AN 4 CT regulating and confirming the for
nation Of real estate title insurance COM
panies.
Belt enacted by the Legislature of the State of
SECTION l. Any ten or more persons may as
soclate themselves together in the manner pre-:
Statutes 1878" with a capital of not less than
five hundred thousand dollars nor more than one
million dollars. for the purpose OF examining
titles to real estate and of guaranteeing or in
surng owners OF real estate and Others inter-
csted therein, or having liens or encumbrances
thereon, against loss by. reason of defective
tions so established shall have the same powers
and privileges and be subject to the same du-
ties, liabilities and restrictions as other corpo-
rations established under said title, save that
the liability Of said corporations upon policies
OF insurance shall not be construed as consti-
tuting part of the liability thereof within the
meaning OF said act; nor shall such corporations
be subject to the laws specially relating to in
surance corporations. except as hereinafter pro-
viued.
SEC. 2. Every such corporation shall set apart
sum not less than twO-htths OF the amount of
its capital stock, but in no case less than two
hundred thousand dollars, as a guaranty fund
ana shall invest the same in the kinds of securi-
ties prescribed by section Of chapter 3 of the
General Laws Of Minnesota for 1885; and no
corporation shall issue any guaranty or policy
OF insurance until such sum has been so set
apart and invested. Such guaranty fund shall
be kept and applied for the security and pay
ment Of losses and expenses which may be in
CURED by reason of the guaranty or insurance
made as aforesaid. and shall not be
s1ntj snbject It, to other liabilities Of the cor
or insurance is outstanding. In case an increase
in the amount OF its capital stock shall be made
by any such CORPORATION, two-tifths OF such in
crease OF the capital stock shall be set apart
and added to the guaranty fund thereof and
kept and invested as aforesaid Whenever on
account OF loss or otherwise the amount OF the
guaranty fund OF such corporation shall tall be-
low such sum as Is so required to he set apart
and invested BY this act, no further guaranty or
insurance shall be isAed until the deficiency
below the amount so required has been supplied
SEC. 3. Every such corporation shall, on or
before the first day Of March in each year. file in
the Office ot the insurance commissioner a state
ment OF the amount OF its policies outstanding
on the preceding 31st day OF December, made
out in such form as said insurance commissioner
specify the amount and kinds of securities and
investments held by said corporation; such
statement shall be signed and sworn to by the
President, Vice President or Treasurer and by
one director Of such corporation and such cor
porations shall be taxed in like manner as do
nestle insurance companies are. The insurance
thOritv to visit and examine all corporations
established hereunder and to compel a compli-
ance with the provisions Of law governing them
as he may by law exercise in relation to domestic
insurance companies.
SEC. 4. No corporation which shall be organ
lied under this act shall make any contract or
issue any policy of guaranty or Insurance until
1t has filed with tie insurance commissioner
a copy OF the record OF it's certificate Of
OTeaulAatlCu III Cne ONCE OF the secretary OF
state, and obtained from the insurance commits
sioner his certificate that it has Complied with
the laws applicable to it and is duly authorized
to do business.
Sec. 5. Any CORPORATION heretofore organized
under the laws Of this state for the purpose,
among others, Of carrying on and which has be-
gun. or actuslly has entered upon the prepara-
tlOn Tor, the business Of real estate title insur-
ance and has heretofore filed its articles OF in
corporation in the Office OF the secretary of state
OF Minnesota, is hereby In all respects legalized
and confirmed, and shall be entitled to ali the
privileges and franchises in this act provided
SEC. 4. This act shall take effect and be in
force from and after its passage.
Approved Feb. 2Sth, 1887